By Madla                                         S.B. No. 227

      75R930 DWS-F                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to a grant or loan for a local area adversely affected by

 1-3     a reduction in defense-related activity.


 1-5           SECTION 1.  Subtitle F, Title 4, Government Code, is amended

 1-6     by adding Chapter 486 to read as follows:


 1-8                             DEFENSE REDUCTION  

 1-9           Sec. 486.001.  DEFINITIONS.  In this chapter:

1-10                 (1)  "Defense worker" means an employee of:

1-11                       (A)  the United States Department of Defense,

1-12     including a member of the armed forces and a government civilian

1-13     worker;

1-14                       (B)  any employee of a government agency, private

1-15     business, or department of defense related function that is

1-16     employed on a defense facility; or

1-17                       (C)  any employee of a business that provides

1-18     direct services or products to the department of defense and whose

1-19     job is directly dependent on defense expenditures.

1-20                 (2)  "Defense worker job" means a department of defense

1-21     authorized permanent position or a position held or occupied by one

1-22     or more defense workers for more than 12 months.

1-23                 (3)  "Department" means the Texas Department of

1-24     Commerce.

 2-1                 (4)  "Panel" means the Defense Economic Adjustment

 2-2     Assistance Panel.

 2-3           Sec. 486.002.  GENERAL POWERS AND DUTIES.  (a)  The

 2-4     department shall administer and monitor the implementation of this

 2-5     chapter.

 2-6           (b)  The department shall establish criteria and procedures

 2-7     for evaluations and awarding grants.

 2-8           (c)  The department shall adopt rules necessary to carry out

 2-9     the purposes of this chapter.

2-10           Sec. 486.003.  ELIGIBILITY FOR GRANT.  (a)  A local

2-11     governmental entity is eligible for a grant under this chapter if

2-12     it is:

2-13                 (1)  a municipality or county that is  an adversely

2-14     affected defense-dependent community; or

2-15                 (2)  a regional planning commission that has an

2-16     adversely affected defense-dependent community within its

2-17     boundaries.

2-18           (b)  A municipality or county is an adversely affected

2-19     defense-dependent community if the department determines that:

2-20                 (1)  the municipality or county requires assistance

2-21     because of:

2-22                       (A)  the proposed or actual establishment,

2-23     realignment, or closure of a defense facility;

2-24                       (B)  the cancellation or termination of a United

2-25     States Department of Defense contract or the failure of the

2-26     department of defense to proceed with an approved major weapon

2-27     system program;

 3-1                       (C)  a publicly announced planned major reduction

 3-2     in department of defense spending that would directly and adversely

 3-3     affect the municipality or county; or

 3-4                       (D)  the closure or a significant reduction of

 3-5     the operations of a defense facility as the result of a merger,

 3-6     acquisition, or consolidation of a defense contractor operating the

 3-7     facility; and

 3-8                 (2)  the municipality or county is expected to

 3-9     experience, during the period between the date an event described

3-10     by Subdivision (1) is finally approved and the date that the event

3-11     is to be substantially completed, a direct loss of:

3-12                       (A)  2,500 or more defense worker jobs in any

3-13     area of  the  municipality or county that is located in a

3-14     metropolitan statistical area;

3-15                       (B)  1,000 or more defense worker jobs in any

3-16     area of  the municipality or county that is not located in a

3-17     metropolitan statistical area; or

3-18                       (C)  one percent of the civilian jobs in the

3-19     municipality or county.

3-20           Sec. 486.004.  GRANT CRITERIA.  From money appropriated for

3-21     this purpose, the department may make a grant to an eligible local

3-22     governmental entity to allow the entity to meet a matching money or

3-23     investment requirement in order to receive from the United States

3-24     assistance that is provided to allow the local governmental entity

3-25     to respond to or recover from an event described by Section

3-26     486.003(b)(1).  In addition, a grant may be made to an eligible

3-27     local governmental entity to match the entity's contribution for a

 4-1     purpose described in Section 486.005 on a closed or realigned

 4-2     defense facility.  A grant may not be less than $50,000 or more

 4-3     than the least of:

 4-4                 (1)  50 percent of the amount of matching money or

 4-5     investment that the local governmental entity is required to

 4-6     provide;

 4-7                 (2)  50 percent of the local governmental entity's

 4-8     investment for purposes described in Section 486.005, in cases

 4-9     where United States assistance is not available; or

4-10                 (3)  $2 million.

4-11           Sec. 486.005.  USE OF PROCEEDS.  (a)  The local governmental

4-12     entity may use the proceeds of the grant for purchase of property

4-13     from the department of defense or its designated agent, new

4-14     construction, rehabilitation, or renovation of facilities or

4-15     infrastructure, or purchase of capital equipment or insurance.

4-16           (b)  The local governmental entity may deliver the money to a

4-17     special district, development corporation, or other instrumentality

4-18     of the state or the local governmental entity for use as provided

4-19     by this chapter and other applicable law.


4-21     The department shall establish a defense economic adjustment

4-22     assistance panel within the department.  The panel consists of at

4-23     least three and not more than five professional full-time employees

4-24     of the department appointed by the executive director of the

4-25     department.

4-26           Sec. 486.007.  APPLICATION FOR GRANT.  A local governmental

4-27     entity may apply for a grant under this chapter to the department

 5-1     on a form prescribed by the department.  The department shall

 5-2     establish periodic application cycles to enable the panel and

 5-3     department to evaluate groups of applicants in relation to each

 5-4     other.

 5-5           Sec. 486.008.  EVALUATION OF APPLICATION.  The panel shall

 5-6     evaluate each application and assign the applicant a score based

 5-7     on:

 5-8                 (1)  the significance of the adverse effect within the

 5-9     local governmental entity, including the number of jobs lost  in

5-10     relation to the workforce in the local governmental entity's

5-11     jurisdiction and the effect on the area's economy and tax revenue;

5-12                 (2)  the extent to which the local governmental entity

5-13     has used its existing resources to promote local economic

5-14     development;

5-15                 (3)  the amount of any grant that the local

5-16     governmental entity has previously received under this chapter;

5-17                 (4)  the anticipated number of jobs to be created in

5-18     relation to the amount of the grant sought; and

5-19                 (5)  the extent to which the grant will affect the

5-20     region in which the local governmental entity is located.

5-21           Sec. 486.009.  MAKING OF GRANT.  The panel shall submit its

5-22     scores to the department's governing body.  The governing body

5-23     shall use the scores to determine whether to make a grant to an

5-24     applicant.  The governing body may not make a grant unless the

5-25     legislature has appropriated the money for the grant.

5-26           SECTION 2.  The importance of this legislation and the

5-27     crowded condition of the calendars in both houses create an

 6-1     emergency and an imperative public necessity that the

 6-2     constitutional rule requiring bills to be read on three several

 6-3     days in each house be suspended, and this rule is hereby suspended,

 6-4     and that this Act take effect and be in force from and after its

 6-5     passage, and it is so enacted.